Tailwater Capital

Connect Midstream Secures $150 Million Equity Commitment from Tailwater Capital

OKLAHOMA CITY, July 25, 2017– Connect Midstream, headquartered in Oklahoma City, announced a $150 million commitment from a Dallas-based energy private equity firm, Tailwater Capital. Connect Midstream is focused on providing innovation, energy and results to midstream customers in the Mid-Continent and across North America. Connect aims to redefine a solutions oriented approach to the midstream industry, through providing a full suite of midstream services including gas gathering, processing, treating and compression, crude oil gathering, storage and transportation, condensate stabilization/splitting, produced water gathering and redelivery, and commodity marketing.

By leveraging our commercial, engineering and operational expertise, the veteran management team at Connect is dedicated to protecting the investments of our upstream partners by delivering scalable projects on time while setting a new standard for operational excellence. Connect’s management has lived midstream from both the midstream and upstream perspective, offering the experience to anticipate challenges and the knowledge to solve them.

The company, led by President and Chief Executive Officer Brandon J. Webster, Chief Operating Officer Chad B. Cagle and Chief Finance Officer Zach N. Gray, brings diverse midstream and upstream experience from companies including Kinder Morgan, Inc. (NYSE: KMI), Copano Energy, LLC (acquired by KMI), Enable Midstream Partners, LP (NYSE: ENBL), Midstates Petroleum, LLC (NYSE: MPO) and SemGroup Corporation (NYSE: SEMG). Collectively, the team has a proven track record, playing key roles in more than $4 billion in midstream projects and transactions. Connect has extensive experience and success originating projects and acquisitions as well as managing, constructing and operating assets in the Mid-Continent, Permian Basin, Rockies, Bakken and Haynesville.

“We couldn’t be more excited to be building a company at home in Oklahoma,” said Mr. Webster. “While Connect stands ready to pursue opportunities in all U.S. basins, we’re excited about the landscape in the Mid-Continent. The growth in the SCOOP and STACK have revitalized our state and we expect production to hit record levels. With more than 130 rigs deployed in the state, we know Oklahoma is primed for growth and Connect is here to serve the producers who invest here.”

Jason Downie, Managing Partner at Tailwater, said, “To be successful in the Mid-Continent, we believe that it is extremely important to have a team that has deep ties to the basin as well as long-standing relationships with existing producers and midstream operators in the area. Connect brings tremendous familiarity and midstream expertise across the Mid-Continent to Tailwater, and we are thrilled to be partnering with a team that is well-respected in the Oklahoma community. This team represents the first commitment in our new midstream fund, Energy Fund III.”

“When looking for a capital partner, Connect sought long-term alignment, ability to expedite the evaluation of investment opportunities, and true expertise in the midstream space. Tailwater exceeded our expectations and was a clear choice to help us execute on our vision,” Webster said.

Connect Midstream was represented by Connor & Winters, LLP’s Tulsa, Oklahoma office. Partner J. Ryan Sacra served as lead advisor to Connect. Thompson & Knight, LLP advised Tailwater Capital, with J. Holt Foster, III as lead counsel from the firm’s Dallas office.


Headquartered in Oklahoma City, Oklahoma, Connect Midstream is a private midstream energy company focused on providing innovation, energy, and results to midstream customers in the Mid-Continent and across North America. Connect’s full suite of midstream services includes natural gas gathering, processing, treating and compression; crude oil gathering, storage and transportation; condensate stabilization/splitting; produced water gathering; and marketing services. Connect Midstream is backed by a $150 million funding commitment from Tailwater and Connect management. Tailwater expects to increase its commitment to Connect as the company executes its growth strategy. For more information, please visit www.connectmidstream.com.


Dallas-based Tailwater Capital is a sophisticated, growth-oriented energy private equity firm with a well-established track record, having executed more than 65 energy transactions in the upstream and midstream sectors representing over $16.6 billion in transaction value. Tailwater currently manages over $2.1 billion in committed capital, over $700 million of which is available for new investments. Tailwater is focused on acquiring and growing midstream assets as well as participating in non-operated upstream opportunities in select basins. For more information, please visit www.tailwatercapital.com.

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